Why Risky Lending Is a Problem in China

Banks are nervous after a string of suspected fraud cases. Sabine Bauer of Fitch tells the WSJ's Enda Curran why banks need to be vigilant.

This transcript has been automatically generated and may not be 100% accurate.

... in China Western bites are growing nervous of summer ski lending for Wall Street Journal Amanda current joining bison being hours ahead of Hong Kong buy ratings on Fitch Ratings ... thank you so much ... to be in ... the one shown at the moment with some buying sprees in two proteins and one and the risk of NPO historically under were seen problem loans gray area of suspect phones ... can just over two walked over means reduced or economy to begin with and what that means for her and yells ... yes ... I'm it's in Hong Kong banks and so ... ten things home and finds time ... as the snow is season and at the same time as the economy slow was ... I think that with the challenge was on the ... quantity of the spill was at the repayment capacity ... in which the challenge will be on these banks can see from from a store on a run and tells what it's less of autistic a comedy show and we don't expect to see um ... hi ... I'm new switching to a studious of photos ... I think would also have to look at is the way he's known to structure ... and it's what I am well on with the ... the bank standstill ... that's a coupon roll to seal the order sought an adjournment but knowing we have to probably loans rising from a recent examples of suspected fraud cases ... or issues where companies term and repay you for one reason or another ... the ... dessert case the right thing to step up their due diligence all of which is seen with some friends for ... well let it predicts ... that way if you took a polyps risk management I think that two aspects that one is that was appetite ... and and longest post minus one plus is that it is in sentencing ... Justice deductions things ... to have these are the underwriting standards and in all Kenny and ... can affect about it all eight teams ... I think also of purity code must accrue to the latest on our own was flying summing it up it caught up on debt to love ... that may not all the speed force a vote by some as it may not even be there anymore ... and then use your soul on corporate governance weaknesses at the fall and its constituents ... should be buying step beyond just came out of bouncy houses and you more in tips from whale of a competent person on this one company is well ... when there's only so much it could still fall rate it sits better next move ... a consideration of how the things you wouldn't top what the statue is less than ten minutes ... and and was placed on the first appetites ... if the banks Amal asked what was that I don't know if ... it's ... a heck of a high concentration was into China ... that's one of them but that too much and kept me totally ... Sabine NPO loose on Chinese loans are due to work a moment of our nieces insofar as we can ... live without it we can get ... I don't know how rumors recall the March peak going for what's been going through the years with ... its debut ... season for the sorts ... cost them though ... the West on banks generally it's a movie that much of it because that one day a handful of banks which we knew the significant exposed and use of the night sky it seems that top US ... and and the on call thanks to tumble exposed as ... well as the Taiwanese banks but I think that's ... what the the the some things have ... been very carefully ... there's no danger no ratings from justice ... not yet ... ready for more this story go to build a national calm ...